New limits for Chapter 13 qualifications.
By Rachel Lynn Foley - Kansas City, MO Bankruptcy on Apr 22, 2007 in Chapter 13 Bankruptcy, Discharge, What Can and Cannot Be Forgiven, General Bankruptcy Information, Venue and Qualifications
As of April 1, 2007 under § 109(e) Eligibility for Chapter 13, unsecured liquidated debt, increased from $307,675 to $336,900; secured liquidated debt, from $922,975 to $1,010,650. Keep in mind that most people qualify for a Chapter 13 but these new guidelines are good news for anyone who is coming out of school with a tremendous amount of student loans such as doctors or lawyers. The student loans are unsecured, non-priority, and are generally non-dischargeable debts. So the bottom line is the student loan increases the amount of your unsecured debt that must be considered as to whether or not you qualify for a Chapter 13.
See also Cathy Moran’s post Do I qualify for a Chapter 13? See also Andy Miofsky’s post Can I discharge my student loans?
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